SMITHS FALLS, ON, Feb. 16, 2018 /CNW/ - Canopy Growth Corporation (WEED.TO) ("Canopy Growth" or the "Company") is pleased to announce that it has been conditionally selected by the Government of Manitoba to operate cannabis retail stores in the province after a rigorous and highly competitive RFP process. Canopy Growth, along with its partner Delta 9, is one of four successful candidates chosen to operate a number of retail locations throughout the province. Once official, this will mark Canopy Growth's second provincial retail agreement after previously announcing plans to apply to operate four retail stores in the Province of Newfoundland & Labrador. To date, four provinces in Canada have put forward their retail and supply frameworks including New Brunswick, Newfoundland & Labrador, and Prince Edward Island; and all of them have chosen Canopy Growth as a trusted partner and supplier.

SMITHS FALLS, ON, Feb. 16, 2018 /CNW/ - Canopy Growth Corporation (TSX:WEED.TO - News) ("Canopy Growth" or the "Company") is pleased to announce that it has been conditionally selected by the Government of Manitoba to operate cannabis retail stores in the province after a rigorous and highly competitive RFP process. Canopy Growth, along with its partner Delta 9, is one of four successful candidates chosen to operate a number of retail locations throughout the province. Once official, this will mark Canopy Growth's second provincial retail agreement after previously announcing plans to apply to operate four retail stores in the Province of Newfoundland & Labrador. To date, four provinces in Canada have put forward their retail and supply frameworks including New Brunswick, Newfoundland & Labrador, and Prince Edward Island; and all of them have chosen Canopy Growth as a trusted partner and supplier.

During 3Q18, Canopy Growth increased its inventory and biological assets to a value of 108.3 Canadian dollars from 56 million Canadian dollars in 3Q17. The company stated that it continues to scale inventory to meet the rising demand that will likely result when cannabis is legalized in Canada later in 2018. With investment activities in the cannabis sector ramping up, Canopy Growth and other players (HMLSF) such as Cronos (PRMCF), MedReleaf (MEDFF), Aphria (APHQF), and Aurora Cannabis (ACBFF) will continue to make investments.

In the earlier parts of this series, we discussed how Canopy Growth (WEED) fared in terms of selling prices, sales volumes, and cost of production. While the company’s cost of production fell 1.9% year-over-year, its selling price rose 13% over the same period. During fiscal 3Q18, Canopy Growth reported a non-GAAP (generally accepted accounting principles) gross margin of 58% of sales, which included the cash operating costs associated with the company’s subsidiaries that aren’t currently cultivating or selling cannabis.

There could possibly be a ceiling on cannabis prices for producers such as Canopy Growth (WEED), Cronos (PRMCF), Aphria (APHQF), and Aurora Cannabis (ACBFF), which could eventually put pressure on margins. Statistics Canada recently crowdsourced a survey to find out how much Canadians paid per gram of cannabis. The above chart contains the results from about 15,600 recreational and medical users across Canada.

Provinces in Canada will tightly control the supply, distribution, and sale of cannabis. With mostly just a single buyer, the government, cannabis producers will have little defense against one of Porter’s five forces: the bargaining power of customers. For example, in Ontario, the government has proposed to sell recreational cannabis, in stores and online, through OCRC (Ontario Cannabis Retail Corporation), a subsidiary corporation of the LCBO (Liquor Control Board of Ontario), which is a government enterprise and currently retails and distributes alcoholic beverages in the province. By July 2018, Ontario plans to have 40 retail locations.

There has been a great deal of enthusiasm recently among investors (MJX) when it comes to cannabis stocks. Of course, the biggest catalyst for sales growth has come from recreational use in Canada. In addition, an increase in medical and recreational cannabis use around the world may also drive sales growth for these companies.

Canada's biggest marijuana producer Canopy Growth said on Wednesday its third-quarter revenue jumped 123 percent to C$21.7 million in the three months ended Dec. 30. The Smiths Falls, Ontario-based company ...

Record quarterly revenue of $21.7 million highest ever reported in Canadian cannabis sector driven by strong domestic and international sales Record Germany quarterly sales of $1 million , all from domestic ...

Record quarterly revenue of $21.7 million highest ever reported in Canadian cannabis sector driven by strong domestic and international sales Record Germany quarterly sales of $1 million , all from domestic ...

SMITHS FALLS, ON, Feb. 14, 2018 /CNW/ - Canopy Growth Corporation (WEED.TO) ("Canopy Growth" or the "Company") today announced that it has signed a letter of intent with the Société des alcools du Québec ("SAQ") to provide the Quebec market with 12,000 kilos of high-quality cannabis annually. Three provinces have now announced supply arrangements with Licensed Producers, all of which include Canopy Growth. The Company now has more supply commitments than any other Licensed Producer in the country.

SMITHS FALLS, ON, Feb. 14, 2018 /CNW/ - Canopy Growth Corporation (TSX:WEED.TO - News) ("Canopy Growth" or the "Company") today announced that it has signed a letter of intent with the Société des alcools du Québec ("SAQ") to provide the Quebec market with 12,000 kilos of high-quality cannabis annually. Three provinces have now announced supply arrangements with Licensed Producers, all of which include Canopy Growth. The Company now has more supply commitments than any other Licensed Producer in the country.